12 2 STA T . 2 80 2 PUBLIC LA W 110 – 28 9—J UL Y3 0 , 2008 betw ee n t h eh old e rs o f the e xi stin g senior m ortg a ge and an y existing s u bordinate mortgages , ta k ing into c onsider - ation the subordinate lien status of such subordinate mort- gages .‘ ‘ (B)SHARED A P PRE CI A T I ON . — ‘‘(i) I N G ENERA L .— T he Board shall establish stand- ards and p olicies that will allow for the payment to the holder of any existing subordinate mortgage of a portion of any future appreciation in the property secured by such eligible mortgage that is owed to the Secretary pursuant to subsection (k). ‘‘(ii) F ACTOR S .—In establishing the standards and policies re q uired under clause (i), the Board shall take into consideration— ‘‘(I) the status of any subordinate mortgage
‘‘(II) the outstanding principal balance of and accrued interest on the existing senior mortgage and any outstanding subordinate mortgages; ‘‘(III) the extent to which the current appraised v alue of the property securing a subordinate mort- gage is less than the outstanding principal balance and accrued interest on any other liens that are senior to such subordinate mortgage; and ‘‘(I V ) such other factors as the Board deter- mines to be appropriate. ‘‘( C ) VOL U NTAR Y PROGRA M .—This paragraph may not be construed to require any holder of any existing mortgage to participate in the program under this section generally, or with respect to any particular loan. ‘‘( 5 )TERMO F MORTGAGE.—The refinanced eligible mortgage to be insured shall— ‘‘( A ) bear interest at a single rate that is fixed for the entire term of the mortgage; and ‘‘(B) have a maturity of not less than 30 years from the date of the beginning of amorti z ation of such refinanced eligible mortgage. ‘‘( 6 ) M A X IMUM LOAN AMOUNT.—The principal obligation amount of the eligible mortgage to be insured shall not exceed 1 3 2 percent of the dollar amount limitation in effect for 200 7 under section 305(a)(2) of the Federal H ome L oan Mortgage Corporation Act (12 U .S.C. 1 4 54(a)(2)) for a property of the applicable size. ‘‘(7) P ROHI B ITION ON SECOND LIENS.—A mortgagor may not grant a new second lien on the mortgaged property during the first 5 years of the term of the mortgage insured under this section, except as the Board determines to be necessary to ensure the maintenance of property standards; and provided that such new outstanding liens (A) do not reduce the value of the G overnment ’ s equity in the borrower’s home; and (B) when combined with the mortgagor’s existing mortgage indebt- edness, do not exceed 9 5 percent of the home’s appraised value at the time of the new second lien. ‘‘( 8 ) APPRAISALS.—Any appraisal conducted in connection with a mortgage insured under this section shall— ‘‘(A) be based on the current value of the property; Stand a r d s.Polic i e s.
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